How to stay compliant

Employer-of-Record (EOR) in Bahrain: Do You Need One?

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How to stay compliant

Employer-of-Record (EOR) in Bahrain: Do You Need One?

So you want to hire someone in Bahrain. Problem is, your company is located somewhere else.

If you’ve done some research, you’ve probably been told you should be using an Employer-of-Record (EOR). Why? Well, if your company isn’t located in Bahrain, using an EOR can help you bypass the traditional obstacles to hiring full-time employees.

But there’s a catch: EOR solutions in Bahrain are expensive—usually at least $500 per month per employee—and can take time to setup. And because you’re complying with a different set of labor laws, logistics and benefits can end up costing you lots of time and money. While they will save you time from setting up your own Bahraini entity, they’re rarely cheap or fast.

The good news? There’s another way to hire remote workers in Bahrain, and it doesn’t involve forking out huge amounts of money for an EOR.

The solution: Hire your teammates in Bahrain as contractors. If you’re hiring remotely and your teammates have autonomy ,there’s a good chance you can make compliant contractor hires. You still have to use locally-compliant contracts, but the process is a lot easier, more affordable, and faster.

We built Thera to help you make contractor hires, in 150+ countries (like Bahrain). So you can hire the people you want on your team, without paying thousands for an EOR. You can get set up in a couple of clicks—and you’ll only pay $49 per contractor per month.

It’s just as easy as it sounds. No catch. Here’s what Thera looks like vs. an EOR in Bahrain:

Everything you should know about using an EOR in Bahrain

Are you considering expanding your business to Bahrain or hiring independent contractors abroad? If so, you may have heard of the term "EOR" or Employer of Record. An EOR is a third-party company that takes on the responsibility of employing and managing your staff in a foreign country. In this post, we'll break down everything you should know about using an EOR in Bahrain, including any legal or regulatory conditions specific to the country.

What is an EOR?

An EOR is a company that acts as the legal employer of your staff in a foreign country. This means that the EOR takes on the responsibility of hiring, firing, and managing your staff, while you maintain control over their day-to-day work. The EOR also handles all legal and administrative tasks related to employment, such as payroll, taxes, and benefits.

Why use an EOR in Bahrain?

Bahrain is a small island country in the Persian Gulf with a population of just over 1.5 million people. Despite its small size, Bahrain has a thriving economy and is home to many international businesses. If you're considering expanding your business to Bahrain, an EOR can help you navigate the complex legal and regulatory landscape of the country.

Legal and regulatory conditions in Bahrain

Bahrain has a relatively business-friendly environment, with a low corporate tax rate of 5%. However, there are several legal and regulatory conditions that you should be aware of if you're considering using an EOR in Bahrain.

Firstly, all foreign workers in Bahrain must have a valid work permit. This permit is obtained through the Labor Market Regulatory Authority (LMRA), which is responsible for regulating the employment of foreign workers in the country. An EOR can help you navigate the process of obtaining work permits for your staff.

Secondly, Bahrain has a mandatory social insurance scheme called the General Organization for Social Insurance (GOSI). All employers in Bahrain are required to register with GOSI and contribute to the scheme on behalf of their employees. An EOR can help you ensure that you are compliant with GOSI regulations.

Why hire independent contractors instead?

While using an EOR can be a great option for some businesses, it may not be the best choice for everyone. If you only need to hire a few workers in Bahrain, it may be more cost-effective to hire independent contractors instead. This is because independent contractors are not subject to the same legal and regulatory conditions as employees, and you will not need to pay for their benefits or handle their payroll.

What if I accidentally misclassify my contractors?

We’ve got two pieces of good news for you. For one, if you’re hiring remotely, it’s unlikely you’ll misclassify your contractors. Many of the things that qualify people as employees, such as company equipment and set working hours, don’t typically apply to remote work.

Still, it’s helpful to have the comfort of knowing you’re not at risk for misclassification. That’s why, at Thera, we’ve launched Misclassification Assurance: so you can hire contractors abroad, worry-free. Learn more about hiring with Thera below.

Hiring contractors? Thera can save you a ton of time

If you’re hiring contractors, you’re probably spending too much time on their payroll, contracts, and tax documents. Which is why we built Thera, which saves you 90% the time you spend on contractor paperwork each month.

With Thera, you can compliantly hire your contractors in 150+ countries, onboard them in minutes, and pay them all at once (in a click). It’s global contractor payroll, finally simplified.

Sound interesting? Click here to book a demo and see the platform firsthand

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